__Age has its benefits, but cramming dozens of candles on a birthday cake isn’t one of them!__

You probably remember looking forward to your birthday when you were a kid.  As we get older, birthdays don’t seem to hold the same charm. Still, some birthdays are more important than others— *financially* speaking. Here’s our list:

- __Day One.__  Newborns can be signed up for Social Security right out of the gate, so to speak.
- __Childhood.__  Just enjoy it, but when you turn 15, you can get a learner’s permit, and Mom and Dad’s insurance rates go through the roof.  Parents, don’t just take this sitting down, unless you’re sitting down in front of your computer doing *research*. Always shop around for the best auto coverage.
- __Age 18, legally adult.__  You can register to vote, sign up to serve in the military, and make medical choices for yourself. If you’re a parent with one of these adult-but-not-really-grown-up individuals in your house, this would be a good time to sit down and talk about grown-up things like credit cards, insurance, and investing.
- __Age 19.__ Parents or guardians can no longer claim you as a dependent for tax purposes. College students can put this off until *age 24*. There’s one good reason for staying in school!
- __Age 21.__ If you’re self-employed at age 21, good for you! You can start investing in a SEP-IRA.
- __Age 24.__ The apron strings and purse strings get cut all at once when you turn 24, if you’ve been in college and filing as a dependent on your parents’ tax return.  Prepare to file on your own when you turn 24, unless you’re already earning enough income to file separately.
- __Age 26.__ You can no longer be on your parents’ or guardians’ health insurance.

__There’s a gap in the milestone birthdays here, to give you time to get your career and family underway, build for the future, and follow God’s leading into adulthood.__

- __Age 50.__ This is when you can start putting *extra* money into your retirement plans. This is Uncle Sam’s way of letting you “catch up” in saving for retirement. 50 is also the age when people start making annoying jokes about getting old.  Maybe it’s time to pay for a gym membership!
- __Age 55.__ Take advantage of the Senior Discount at the local All You Can Eat Buffet! Really, though, senior discounts can save you a lot of money, even if you don’t feel that old!
- __Age 59 ½.__ You can take money *out* of your tax-advantaged retirement plans without penalty— but don’t. You’ll need that money when you retire.
- __Age 60.__ Widows and widowers can receive the full amount of their deceased spouse’s benefits from Social Security.
- __Age 62.__ You’re now eligible to receive Social Security income.  If you wait to take SS benefits, you’ll increase your monthly check by 8% for each year you delay.
- __Age 65.__ Time to enroll in Medicare.  Open enrollment starts 3 months before your 65th birthday and lasts 7 months.  Don’t miss the deadline!
- __Age 66 or 67.__ Depending on when you were born, your full retirement age is either 66 or 67. At that point, you’re eligible to receive 100% of your Social Security benefits. Delay signing up and you could earn up to 8% more a year. Wage earners who reach full retirement age at 67 but delay claiming benefits until 70 (when delayed retirement credits stop) will get an extra 24% tacked on to their monthly payment.
- __Age 72 or 73__ (depending on your birthday). Required Minimum Distributions begin. RMDs are minimum amounts you have to withdraw from your pre-tax retirement plan accounts each year.  There are steep penalties if you don’t comply. There are no RMDs for Roth accounts.
- __Age 73 and above:__ Studies show the older we are, the more complicated retirement gets, both financially and personally. You’ll need to address things such as housing, driving challenges, caregiving needs, and staying healthy and fulfilled.

__No matter what birthday you’ll celebrate this year, we hope you’ll make your relationship with God a priority. Psalm 71:18 says -__ 

__“*Even when I am old and gray, do not forsake me, my God, till I declare your power to the next generation, your mighty acts to all who are to come.”*__

You can also __[listen](https://www.faithfi.com/search?q=Financial%20Milestone%20Birthdays&videos=true&articles=true&podcasts=true&posts=true&groups=true&events=true&support=true)__ to the related podcast on this topic.

FaithFi

Articles

Some birthdays are more important than others— financially speaking. Here’s our list of the important ones to remember.

MANAGE | Oct 19, 2023

Financial Milestone Birthdays

By: Carolyn Calupca

Where Faith Meets Finance

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